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Following the successful listing of its shares at the Botswana Stock Exchange’s unlisted entities board – Serala, BBS limited has said that it now readying to acquire a new banking license from the banks regulator and full commercialise its operations.
Managing Director, Pius Molefe, said this week when announcing the company’s financial results for the year ended that the former society is well prepared to transition to the new commercial bank.
“Our upgraded systems are in place; we will strengthen the leadership team with new members in relation specialist functions, and; we are embedding the new organisational structure amongst a number of initiatives. By the time BBS is issued with a commercial banking license, we would have been long ready for the new dispensation”, Molefe said in notes accompanying the full year financial results.
The full year financials reflect a four percent increase in profit of up to P49.9 million recorded during the year ended 31 March 2018 (2017: P47.885 million).
On the other hand, Interest income increased by 1 percent from P299.384 million (2016/17) to P303.079 million while dividends paid amounted to P57.805 million. In the previous year BBS paid P59.3 million in dividends.
Once it has registered as a bank, Molefe said, BBS will build on its solid foundation as a mortgage lender and savings institution to offer a full range of products and services
The building society business model limits products and services offerings to mortgages and investment products such as Paid Up Shares.
Meanwhile Molefe said that listing on Serala this past week will improve the liquidity of BBS shares much to the benefit and delight of its shareholders.
“I suspect, people may have already started calling to find out the market value of their investments and how such value is determined,” he stated
As the country’s first indigenous bank, it is expected that BBS Limited will face 10 other licensed commercial banks already in the market – all of which are foreign owned.